After a 15-month consolidation, is Bitcoin (BTC) ready to embark on a counter-trend rally?
A bit of history. During 2016-7, Bitcoin was locked in a speculative mania. Prices skyrocketed 50x in less than two years, from $380 to $20,000. Since its peak in December 2017, prices have been struggling. The massive price collapse saw Bitcoin plunged by a staggering 80% ($20,000 to $3,500). The most recent downside breakout occurred at $6,000.
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But prices have been steady above $3,000 for some months. This raises the possibility of an equilibrium reached between buyers and sellers. The crypto coin tested $4,000 recently, which is not a lower high. Also, I note prices are moving towards the long-term trend indicator (see Featured Chart).
To suggest a more positive outlook requires Bitcoin prices to break the $4,000 barrier and stay above this level. Watch for a breakout buy signal.
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